Business Loan vs LAP — which is right for you?
| Business Loan (Unsecured) | Loan Against Property (LAP) | |
|---|---|---|
| Collateral | None (CGTMSE-backed for MSMEs) | Your shop, office, residential property |
| Amount | ₹5 L – ₹1 Cr (₹50 L unsecured cap typical) | ₹10 L – ₹5 Cr (up to 60–70% of property value) |
| Interest | 14% – 22% | 10% – 13% |
| Tenure | 1–5 years | Up to 15 years |
| Approval Time | 3–10 days (fintechs faster) | 15–30 days |
| Best for | Working capital, inventory, short-term needs | Business expansion, machinery, large capex |
Business Loan — what we offer
1. Unsecured Business Loan (Banks)
- Lenders: HDFC, ICICI, Axis, Kotak, IDFC First, Bajaj Finserv, Tata Capital
- Amount: ₹5 L – ₹50 L
- Rate: 14% – 18% (depending on vintage, turnover, CIBIL)
- Tenure: 1–5 years
- Eligibility: Business vintage 2+ years, ITR/GST shown turnover ₹40 L+/year, CIBIL 700+
2. CGTMSE-Backed MSME Loan (Collateral-Free)
- Amount: Up to ₹5 Cr (no collateral required — guaranteed by CGTMSE)
- Lenders: SBI, Bank of Maharashtra, BoB, PNB, Canara, Union Bank, Axis
- Rate: 10% – 13% (lower than unsecured)
- Tenure: Up to 7 years
- Eligibility: Udyam-registered MSME, business vintage 2–3 years preferred
- Note: Slower process (4–6 weeks) but significantly lower rate
3. Fintech Unsecured (Fast)
- Lenders: Lendingkart, Indifi, FlexiLoans, ZipLoan
- Amount: ₹50 K – ₹50 L
- Rate: 15% – 22%
- Disbursal: 48–72 hours
- Eligibility: 6 months+ GST + bank statements; CIBIL 650+
- Best when: You need cash THIS week and can pay slightly higher rate
4. Machinery / Equipment Finance
- Amount: Up to 100% of machinery value
- Rate: 11% – 14%
- Tenure: Up to 7 years
- Lenders: SBI, BoM, Tata Capital, Bajaj, equipment finance NBFCs
5. Working Capital — Overdraft / Cash Credit
- Type: Revolving credit facility (pay interest only on amount used)
- Limit: Up to 25% of annual turnover
- Rate: 10% – 14%
- Renewal: Annual
- Best for: Businesses with seasonal cash flow, inventory cycles
Loan Against Property (LAP) — what we offer
- Property types accepted: Residential, commercial shop, office, industrial shed
- LTV (Loan-to-Value): 60–70% of market value (residential), 55–65% (commercial)
- Amount: ₹10 L – ₹5 Cr (up to ₹15 Cr for HNI cases)
- Rate: 10% – 13%
- Tenure: Up to 15 years
- Lenders we work with for LAP: HDFC, ICICI, Bajaj Finserv, Tata Capital, Aditya Birla, Poonawalla, IIFL, India Shelter
- Use of funds: Business expansion, debt consolidation, medical, education, capex — banks usually allow any legitimate purpose
LAP for Sinhagad Road shop owners
Own a shop on Sinhagad Road, in Khadakwasla market, Dhayari, or Warje? Most retail and commercial properties in this corridor are bank-approved for LAP. Typical disbursements: ₹40 L – ₹2 Cr against shops worth ₹70 L – ₹3.5 Cr. We handle valuation, legal, and title clearance end-to-end.
Indicative rates (May 2026)
| Product | Rate (from) | Max Amount |
|---|---|---|
| Business Loan (Unsecured Bank) | 14.00% | ₹50 L |
| CGTMSE MSME Loan | 10.50% | ₹5 Cr |
| Fintech Business Loan | 15.00% | ₹50 L |
| Machinery Loan | 11.00% | 100% of cost |
| OD / Cash Credit | 10.50% | 25% of turnover |
| LAP — Residential | 10.00% | 70% of value |
| LAP — Commercial | 10.75% | 65% of value |
Documents we'll collect (business)
- KYC: PAN, Aadhaar (proprietor / all partners / directors)
- Business proof: Udyam, GST certificate, Shop Act
- GST returns: Last 4 quarters
- ITR + computation: Last 2–3 years
- Audited financials (P&L + BS): Last 2–3 years (for amounts above ₹25 L)
- Bank statements: Current account 12 months + savings 6 months
- Existing loan statements (if any)
- For LAP: Property docs (sale deed, index II, 7/12, NA order, building plan approval)
Why a local DSA gets you a better deal
For business loans and LAP, the underwriting is far more judgmental than home loans — and that's where a local DSA with bank relationships earns its keep. We know:
- Which bank's underwriter clears Khadakwasla / Sinhagad Rd shop properties without unnecessary back-and-forth
- How to present your ITR / GST when there are seasonal dips or COVID-era issues
- Which CGTMSE lender clears collateral-free files fastest
- Which fintech to use when you need cash this week vs cheapest rate
Get started
WhatsApp +91-7770003265 with: business type, turnover (annual), loan needed, purpose. Free eligibility check + 3-bank comparison within 4 hours.